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Minutes 07-08-08 MINUTES OF THE COMMUNITY REDEVELOPMENT AGENCY MEETING HELD ON TUESDAY, JULY 8, 2008, AT 6:30 P.M. IN CITY COMMISSION CHAMBERS, BOYNTON BEACH, FLORIDA PRESENT: Jerry Taylor, Chair Jose Rodriguez, Vice Chair Woodrow Hay Marlene Ross Ron Weiland Lisa Bright, Executive Director James Cherot, Board Attorney I. Call to Order - Chairman Jerry Taylor Chair Taylor called the meeting to order at 6:30 p.m. II. Pledge to the Flag and Invocation Mr. Hay led the Pledge ot Allegiance to the Flag and gave the invocation. III. Roll Call The Recording Secretary called the roll. A quorum was present. IV. Agenda Approval: A. Additions, Deletions, Corrections to the Agenda B. Adoption ot Agenda Motion Mr. Weiland moved to approve the agenda. Mr. Hay seconded the motion that unanimously passed. V. Announcements & Awards: None VI. Consent Agenda: A. Approval ot Minutes - CRA Board Meeting - June 10, 2008 Commissioner Ross pulled Item VI.A. 1 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8,2008 B. Approval of the Period-Ended June 30, 2008 Financial Report C. Approval ot Funding $50,000 trom the Homebuyers Assistance Program to Kristen Gallagher D. Approval of Funding $50,000 trom the Homebuyers Assistance Program to T easha & Kelly Thomas Chair Taylor pulled Item VI.D. E. Approval ot Funding up to $1,500 from the Community Meeting Grant Program to Marina Village Marine Association Mr. Hay pulled Item VI.E. F. Approval of Agreement with RTG tor Commitment ot HAP Funds up to $400,000 tor FY 08/09 Vice Chair Rodriguez pulled Item VI.F. G. Approval ot Proposal by Toter, Inc. to Provide Automated Trash Containers tor N. Federal Highway and the Heart ot Boynton Areas. Vice Chair Rodriguez pulled Item VI.G. Motion Mr. Hay moved to approve the Consent Agenda less the items pulled. Mr. Weiland seconded the motion that unanimously passed. A. Approval ot Minutes - CRA Board Meeting - June 10, 2008 Commissioner Ross c1aritied on page 3, Item I, she contributed $1,000 trom her City Commission discretionary tunds to the Police Athletic League, in her capacity as a City Commissioner, not to the Youth Violence Prevention Project. Motion Ms. Ross moved to approve the minutes as amended. Mr. Hay seconded the motion that unanimously passed. D. Approval ot Funding $50,000 trom the Homebuyers Assistance Program to Teasha & Kelly Thomas 2 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Motion Chair Taylor moved to approve this item. Mr. Weiland seconded the motion that unanimously passed. E. Approval of Funding up to $1,500 trom the Community Meeting Grant Program to Marina Village Marine Association Mr. Hay inquired how payment was made tor this association. Ashley Buckley, Administrative Services Manager, explained the CRA paid tor the meetings in advance, and if the meeting was cancelled the payment was applied to the next meeting. The money goes directly to the City. Mr. Weiland was not in favor ot approving the payments because there were other Homeowners Associations that had to pay to rent meeting space. Motion Mr. Hay moved to approve Item E. Ms. Ross seconded the motion that passed 4-1 (Mr. Weiland dissenting) F. Approval ot Agreement with RTG tor Commitment of HAP Funds up to $400,000 for FY 08/09 Vice Chair Rodriguez liked the Homeowner Program, but was concerned because the item requested funds trom the 08/09 budget and the CRA had not gone through the budget process. Vivian Brooks, Assistant Director, explained this item was generated via direction trom the board at the last meeting to approve the program. RTG, however, would need some sort ot a commitment to move torward. The amount of tunding would be spread over two tiscal years, the 08/09 and 09/10 budget years. The proposed budget tor FY 08/09 was not developed yet, but it was explained there would not be many units available in 08/09 and possibly in 2010 in this price range. She did not anticipate many requests. Jim Cherot, CRA Attorney, explained there was a provision in the document that had a contingency that there must be an appropriation at some point and there was not a restraint on the board's authority to fund or not tund the program. Motion Vice Chair Rodriguez moved to approve. Ms. Ross seconded the motion that unanimously passed. 3 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8,2008 G. Approval ot Proposal by Toter, Inc. to Provide Automated Trash Containers tor N. Federal Highway and the Heart ot Boynton Areas. Vice Chair Rodriguez asked if the containers would be the same throughout rest of the community. Ms. Brooks responded they were similar, and were manufactured for street use. The containers were placed in areas with heavy litter, particularly along Federal Highway where the Palm Tran stops were located. INCA had complained and there would be no additional cost to the City or CRA to pick up the containers. There was briet discussion about the trolley stop on 4th Street and the placement ot a temporary container. Ms. Brooks would contact Larry Quinn about the NE 4th Street stop tor the trolley. A list ot locations for the containers was included, and about 18 ot them were in the HOB and six in other areas of the CRA. Brian Miller, Chair ot the Community Relations Board, explained the effort began nine months ago due to several areas in dire need ot trash receptacles. He explained beautitication cleanups occurred several times per year in the HOB, but two weeks later, litter was everywhere because there was nowhere tor residents to dispose ot the litter. Several months ago, the presidents ot three ot the HOB neighborhood associations drove through the area and selected key locations which were forwarded to the City and then to the CRA. It was noted there was no discussion ot considering South Federal Highway tor receptacles at that time. Ninety percent of the complaints were in the HOB trom Boynton Beach Boulevard North and west to 1-95. Mr. Miller offered to take the members on a tour where they cleaned. Mayor Taylor inquired about the weight ot the containers. The receptacles were 60 gallon containers. Chair Miller reported they would place the containers and then they could do some design work on them through the Pride in Boynton program and the students. Motion Mr. Weiland moved to approve. Mr. Hay seconded the motion that unanimously passed. VII. Information Only A. CRA Policing Activity Report tor the Month ot May 2008 and District Statistics tor the Months of May and June 2008 B. Boynton Beach CRA and Trolley Website Updates 4 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Mr. Weiland explained with the gas crunch, residents were trying to save on gas. He spoke brietly with Bethesda Hospital and they were interested in a direct shuttle from the Tri-Rail to the hospital, with one run in the morning and another in the afternoon for individuals carpooling to the station and then needing to get to the hospital. He thought the idea warranted consideration due to Bethesda being the City's largest employer. Vice Chair Rodriguez inquired whether they would help subsidize the route, as a good neighbor. Lisa Bright, Executive Director, explained the trolley does stop at Tri-Rail. She explained later in the meeting there was an item pertaining to the trolley and it there was somebody specific tor staff to work with trom Bethesda, they would contact them. C. Amended INCA Meeting Minutes - March 10, 2008 D. Boynton Beach Arts Commission Meeting Minutes - May 27,2008 E. CRA Listing on City Website F. CRA Project Status Quarterly Update VIII. Pulled Consent Agenda Items: These items were previously addressed. IX. Public Comments: (Note: comments are limited to 3 minutes in duration) Chair Taylor opened the public comments. Mack McCray, 806 NW 4th Street, thanked the board and explained INCA does not run into the SW portion ot Federal Highway. He thanked the board tor forwarding to him a copy ot counsel's agreement and advised he does not believe all he reads in the newspaper. He expressed concern regarding a statement made that funds spent on a trip did not belong to the citizens. He explained the City was responsible tor all tunds. He thanked the board tor a copy ot a CD where there was discussion ot adding two citizens to the board and a vote. He explained he was unsure what he would do with it and believed it warranted a State investigation because he thought a violation ot the Sunshine Law occurred. Jeannie Taylor, Chair ot the City Library Board, explained the advisory board requested, when reviewing changes to the trolley, that they consider the Library as an important destination. The trolley served the community, including the non-driving community. Teenagers and seniors are served by many activities at the Library. She also explained, her day job was with Palm Tran, and Route 70 served the Boynton Tri- Rail station and travels down Seacrest and serviced Bethesda Hospital. It runs every half hour in the peak hour. 5 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Teasha Thomas, 3800 Max Place, thanked the board tor approving her tunding request tor the First Time Homebuyer program. She was a teacher in Boynton Beach and greatly appreciated it. Chair Taylor closed the public comments. X. Public Hearing: Old Business: None New Business: None XI. Old Business: A. Consideration ot Ocean Breeze Demolition Lien Lisa Bright explained the Demolition Lien, which was purchased as an exception to title, with the Ocean Breeze property had not been released. This occurred under the tormer board and it was part ot an incentive. The original lien was based upon the tact that the City was torced to demolish the complex after the hurricane in 2004. The CRA reimbursed the City $371 K, the cost ot the demolition, and as a result, the CRA held the rights to the lien. Boynton Associates owned several parcels, eight ot which were discussed under the RFT program, and the lien was on those lots as well. Staff was recommending the CRA release the lien to allow Mr. Wooster and RTG to move torward. It was a local redevelopment incentive that was part of the original HOB Plan. By keeping the lien on the property, the CRA could oversee the type ot development that occurred on the property, and it was unlikely a developer could sell the property and recoup those monies. The contract with American Realty was discussed. Ms. Bright explained they were the developer the board selected to develop the project and the CRA had already invested in the demolition to make the property developable tor the contractor. Attorney Cherot claritied the American Realty contract did not reference the lien specifically, rather, it was being treated as a torm of incentive to the redevelopment. There was discussion the request that lien represented a large amount ot money tor the CRNCity to absorb and give as an incentive not knowing whether the property would be tlipped. Ms. Bright reiterated it was part ot what was adopted in the HOB redevelopment plan as a local incentive, and such actions were typical and customary. The land was ready tor redevelopment. She acknowledged the market had shifted; however, she was not 6 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 certain the board would want to add an additional responsibility to their partner, American Realty. Attorney Cherot explained the matter was brought to the attention of the CRA by the property owner's attorney and the lien would interfere with the transter ot property. Whether the issue constituted interference with the redevelopment was not known. Mr. Wooster could not redevelop those eight lots until the lien was lifted. Ms. Bright explained typically a blanket lien was issued against all the properties under that title. Jeff Wooster, 828 South Road, explained the lien was discovered during due diligence. The eight lots they wanted to purchase could not be acquired until the lien was lifted. He was untamiliar with the percentage of the lien that related to the eight lots but believed Ocean Breeze constituted the majority of it. The members discussed partially removing the lien and decided they wanted to see the lien remain on the property until it was ready to be developed. Motion Vice Chair Rodriguez moved to release the eight lots trom the demolition lien and apply the lien, in whole, to the Ocean Breeze land that was remaining. Mr. Weiland seconded the motion. Attorney Cherof advised the process to release the lien was not lengthy, and they would adjust the lien to the specitically identified parcels and torward the documents to Mr. Wooster's counsel tor review and approval. Vote The motion unanimously passed. B. Consideration of Revised Trolley Route and Schedule Vivian Brooks explained because of the downturn in revenue tor the agency, they were reviewing all programs. A review ot the northern trolley route, which was noted to be successful, showed the ridership was slow on Sundays and the last run at 7:15 p.m. during the week had very little usage. The southern route had very little usage in the mornings between 7:15 a.m. to 9:30 a.m., and trom 4:15 p.m. to 7:30 p.m. The weekends also had very little usage. Adjusting the routes would impact 42 riders or 11 % on the north route, and 19 riders or 33% on the south route. The savings to the agency, it they made the changes by August, would save about $47K for this tiscal year and it the adjustments were 7 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 successtul, by $310,321 for FY 08/09. Additionally, it the changes were not successful, the board members could readjust them again in six months. The CRA used data trom December through May in their analysis ot the routes, including daily requests for a Library stop, which the trolley operator indicated was easily accommodated. Staff would continue to monitor the issue and bring back an update in 90 days, especially after October to November, it they started seeing an increase in the riders returning tor the winter, or that the early morning routes affected the students returning to school. It was noted the northern route was constantly adjusted until it met the needs of the community. The program was a pilot program that was budgeted with rollover tunds. Vice Chair Rodriguez preterred not to adjust the southern route until they had a full year's data knowing the economy would continue to decline and ridership may increase. Ms. Brooks explained the southern route was predominately retirees, which was the basis for adjusting the route now. There was agreement the adjustments would be made and the item would be revisited in October and November. The impact ot seasonal residents returning tor the winter and school being in session could then be gauged. Motion Mr. Hay moved to accept the recommendation ot the CRA Staff. Mr. Weiland seconded the motion that unanimously passed. C. Discussion Regarding the CRA Policing Program Vice Chair Rodriguez telt there was good data about activity taking place in the CRA with policing. He advised the statistics showed there was activity, but he inquired how they gauged the effectiveness of the program, compared to when there were no supplemental police. Matt Immler, Police Chiet, explained it was difficult to attribute reductions in crime to police activity. He advised two issues affected crime, the first being age demographics, and the second was the economy. He emphasized those two tactors, overwhelmingly determined whether crime would increase or decrease. Presently, there were more individuals entering the age group between 15 and 39 and as that category increased, the crime would also increase. The most direct effect ot crime in Boynton Beach were burglaries, which was the one crime that was the precursor for a crime problem. They plotted burglaries tor six months in the City and there was not much ot an appreciable change. They noticed pockets of crime that appeared and disappeared. In the CRA area, using the 2007 statistics, the CRA Heart ot Boynton area had the largest crime reductions in Districts II and III. 8 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Most of the police discretionary activity was devoted to the HOB area and performed by the CAT team. The CRA police were over and above the call taking officers as were the officers on patrol, and some of the officers with call handling duties were given discretionary police duties. He thought logically a connection could be made, but he could not say it was due totally to the police activity. The tive CRA officers would be active and visibly patrolling the area. They rode the trolley due to complaints ot harassment, patrolled during the Fourth ot July celebration performing security maintenance, and attended homeowner's association meetings. All efforts contributed in some manner to a reduction in crime. He thought continuing to tund the five CRA police officers would be worthwhile. Chiet Immler explained another indicator ot effectiveness were the calls for service, which had decreased over the last two years. During the first six months of service, the calls tor service were down by over 1,200 calls. He advised if the discretionary service efforts were successful, it would equate to diminished calls for service and the workload tor the torce being reduced. Since they were able to engage in that, and the CRA officers were part ot that, the workload in the CRA area was also reduced. Mr. Weiland inquired about the number of calls tor services on the monthly report and inquired why there were so many calls tor services in relation to the number ot arrests. It was explained a call for service could be tor anything, not necessarily a crime. There was no industry standard establishing any ratios of crimes to arrests that could be used to measure success. Chief Immler believed he was reterring to clearance rates. When a burglary occurred, the crime could be cleared either by arrest, or by exception, which was when it was known who committed the crime and for some reason, they would be unable to prosecute. Boynton Beach's clearance rates were above the State and County levels and were contained on the Police Department website. Ms. Ross thanked Chief Immler for the preventative measures he had undertaken, especially in the HOB, and in the present economic times. She was aware burglaries had been increasing in the new construction sites and was in tavor ot continuing the service. D. Consideration of Financial Impacts tor the Museum of Lifestyle and Fashion History Ms. Bright explained at the June meeting, staff was director 0 expand the CRA boundary to include the three parcels owned by the Museum ot Lifestyle and Fashion History. Staff performed a cursory analysis based on comparable sales and impacts to the agency, particularly to land uses and zoning. A proposal was included in the meeting materials. 9 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Ms. Lori Durante, Executive Director of the Museum ot Litestyle and Fashion History. introduced the other board members in attendance, and Chair ot their Capital Campaign Committee, Mr. Lawrence Davenport. Mr. Davenport explained they were creating awareness ot the museum's efforts, and sent solicitation letters to 400 community leaders. They were setting up individual donors and in December they would make a public announcement about the campaign, but the official announcement would not be made until spring. The museum's request was tor a land swap between the CitylCRA swapping the museums current land, which was1.4 acres on Seacrest Boulevard with the site ot the Old High School, including the parking lot. The economic impact was reviewed. Ms. Durant explained the Museum was a 501 (c) (3) corporation and the only museum approved in Palm Beach County to host travelling exhibitions trom the Smithsonian Institute. They were established in 1999. The building they were proposing was a 93K square toot, state-of-the-art tacility with the necessary security to host national and international exhibitions. The museum would be a regional museum. The museum used the Arts and Prosperity Economic Calculator to determine the museum's impact, and using the basic information they had, the museum's direct and indirect impact on Boynton Beach was between $2M and $6M. The tigures calculated by the Palm Beach County Cultural Council tor the museum was between $3M and $6M. The museum could bring in major exhibits, similar to the King Tut Exhibition. The economic impact, direct and indirect ot that exhibit was $150M and more than 700K people travelled to see the exhibit. Overnight stays in hotels, patronizing restaurants and ticket purchases would also generate local revenues. The museum was working with professional partners for the project. The museum's activities in Boynton Beach included the annual Children and Parents Day event, and exhibitions at the Children's Schoolhouse Museum. The next Children and Parents Day was scheduled tor January 11, 2009, and the third Swedish Enchantment Event, scheduled tor April 4, 2009 at the Boynton Woman's Club. They were working on partnerships with different corporations and businesses in the area and with the Culinary Academy at South Tech. The 2009 Theme tor Children and Parents Day was Candyland, based on the board game. They requested the CRA consider the land swap. Vice Chair Rodriguez explained the proposal was to bring land into the City and then to swap land and he did not see that discussed. Chair Taylor explained the problem was the Museum did not own the land, rather there was $1.8M owed on the property, and the CRA did not have the tunds for the swap. He thought the museum was an 10 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 outstanding idea tor the community, but perhaps they could work with a developer because the CRA could not take on the debt. Vice Chair Rodriguez thought a tirst step would be to incorporate the property into the CRA area, and look at the property tor the tuture, as a tuture site, when there may be incentives. Ms. Bright explained the challenge was the land they owned, was not large enough tor the museum to build a parking structure to accommodate the 93K square toot tacility. The CRA did not own the Old High School property. The MLK corridor and Ocean Breeze were already pledged and Ocean Breeze was under contract. The CRA did not own enough contiguous land on 4th and 5th Street to accommodate the facility. It would have to be assembled through private development. Expanding the boundary was one thing, but they did not have the ability to swap. The museum was ready to proceed, but the CRA had restraints through the Town Square plan. Additionally, the CRA tried to issue letters ot intent; however, they would have to issue an RFP tor the Old High School site to even consider the proposal. She sought direction from the board. The tax revenues were reviewed and Vice Chair Rodriguez thought they should incorporate the land into the CRA as a tirst step and to compensate the City tor the lost tax revenue, they could take CRA property and return it, or attach property they owned. Mr. Hay thought the project would enhance the overall area in the long run and agreed with Vice Chair Rodriguez. Chair Taylor explained he liked the idea; however, to change the CRA boundaries and incorporate the land into the CRA would create false hope. The CRA could not help them for at least the next two years, and $20M would be designated to the HOB. The funds were committed already. Ms. Durant explained inclusion into the CRA area provided greater tunding opportunities with grants and sometimes the City or CRA could receive incentives. It was noted the capital campaign would need three to tive years to reach its total and taking small steps to move things along was considered. Ms. Durant appreciated the members' concerns and explained they saw the project developing gradually. She explained they had approached the proposed Community Trust and they were seeking funding trom the Miami area. It was hoped the museum would have Boynton Beach's support. It was also noted, the tacility would be a good anchor with the HOB and there would be 90 tull time jobs. Motion Vice Chair Rodriguez moved to take initial steps to include the property owned by the proposed museum into the CRA boundaries tor future CRA considerations. Mr. Hay seconded the motion. 11 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Ms. Bright requested c1aritication that it the boundary were expanded whether it was the board's objective to still consider the land swap or to hold the land. She telt if the museum was desirous ot using the Old High School site, it could be addressed in the RFP process. Ms. Durante explained she had met with Planning and Zoning about the land use and zoning issues and whether the tacility could be built on the parcel. They discussed sensitivity to the surrounding property owners, which would be a public use. She also noted, as a non-protit, the museum would not pay taxes, but the CRA would receive the tax revenues from the indirect impacts. Mark Karageorge, 240A Main Boulevard, agreed a land swap at this time was tiscally absurd and thought the museum should look to developers as a potential tie-in as to location, or partnering with a private developer. Barbara Ready, 329 SW 13th Avenue, supported the new museum but thought it needed a different location. She explained it would be toolish to swap one cultural asset in the community tor another, and to tear one down only to replace it. She requested the CRA assist them in finding another location and support them in their efforts. Vote The motion unanimously passed. Commissioner Weiland left the dais at 8:11 p.m. E. Presentation of HOB Work Program Progress Ms. Brooks gave a PowerPoint presentation and explained approximately $3.5M was spent on acquisitions in the MLK corridor prior to August 2006. About $17M was spent between the MLK corridor purchases and other purchases on 4th and 5th Streets, the Ocean Breeze project, the down payment assistance program and the rehab programs. The acquisitions commenced in approximately 2004. Developing land was a long term process. Assembling land was the tirst phase and they would move forward with development as soon as it was economically teasible and advisable. There was briet discussion about the condition of Cherry Hill and some ot the units being under the authority ot the Housing Authority. A tour had been given and County Commissioner Greene was shown how the area was impacted by those units, which some had been boarded up. It was hoped County Commissioner Green could expedite having those units addressed. Commissioner Weiland returned to the dais at 8:16 p.m. Mack McCray, 806 NW 4th Street, inquired it American Realty presented funding options at the June CRA meeting. It was explained in June there was some preliminary 12 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 discussion and a presentation would be made in August. American Realty appeared and advised they were not successful in obtaining CWHIP funding, F. Update on CRA Budget Shortfall Susan Harris, Finance Director, explained at the last board meeting, staff advised based on the preliminary assessed valuations, and the preliminary millage rates, the TIF funding would be reduced to about $8.M. Since then, the Property Appraiser sent out a second notice tor assessed valuations for municipalities and special districts, and their values went up. As a result, instead of the 13.4% loss of assessed valuations, they were now at 11.2% which was still substantially higher than the City's 8.5% estimated loss in assessed valuation. The County reduced its proposed millage rate to last year's rate. Accordingly, the estimated TIF income tor next year was approximately $8.3M. The CRA raised their budget tor next year by $300K and were still working with the Property Appraiser's office to determine why there was such a difference between the City and the CRA's valuations, and would bring the matter back when they received the information. Ms. Harris also advised there were some developments that were not included in the CRA; however, that issue would be addressed later in the meeting. G. Update on Purchase and Sale Agreement for Southern Entertainment Attorney Cherot explained the board previously approved acquiring the alcoholic beverage and adult entertainment licenses, and authorized the deposit of money in escrow to pay tor both ot those, which had been done. The State had initiated a revocation proceeding regarding the liquor license and had not yet released the proceedings per a consent order. That item was the only outstanding item blocking the transaction; however, he anticipated it would occur within another week. Additionally, the developer who had anticipated purchasing the real property had pulled out of the transaction. Brian Smith, 3600 Holdings, explained they had the property under contract for 30 business days and requested more time from the seller in order to further determine the financial aspects ot the acquisition, but they were denied the time extension. He advised they would not speculate the acquisition ot the property at that price and would like to get back into contract with them. He reported they needed time to ensure they should pay that amount. There was discussion the transaction was a package between the developer, the CRA and the owner of the nightclub. Mr. Weiland inquired it the nightclub owner would still be able to sell the license agreement it the building wasn't included. Attorney Cherot responded the indication from the owner ot the adult entertainment establishment and liquor license was they were still willing to transter those items to the City. Although it was discussed as a property and license acquisition, the eRA was not a party to the real estate transaction nor was it contingent upon the contract with the seller ot the two 13 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 licenses. The CRA wanted to ensure there were conditions regarding how the property could be developed. There was discussion whether there could be another nightclub opened at the location without approval by the City Commission. The property was zoned for that type of use, and the City Commission would have to review it; however, there was no prohibition. There was discussion regarding the recording of a restrictive covenant with respect to the adult entertainment activity which was now easier to accomplish since there was no longer a third party. The restrictive covenant was part of the City's contract, and the adult entertainment contract was the only use prohibited. Mr. Smith advised they were still actively pursuing the issue. Mr. Smith explained the change occurred due to the present economic conditions. He thought he had a tenant, but he could not get a response at this point. The ideal candidate tor that location would be a drug store. When they terminated the contract, they communicated a number they would be willing to speculate, but they did not respond. The number discussed was about $800K. H. Consideration ot Adding General Contractors to the CRA Approved GC List Ms. Bright explained staff was given direction to add an additional general contractor for the Residential Improvement Grant program. The recommendation given to staff by legal counsel was to piggyback on the City's existing contracts. A list of the City's active general contractors list was included tor the board's review. Staff believed if they piggybacked, and allowed the Residential Improvement Grant process to consider using those contractors, it would expand the pool ot contractors. This program was from the City's Community Development Department. The recommendation would allow all of the contractors to bid tor the jobs. Mike Simon, Development Manager, explained with CDBG or the rehab program, they use a list ot builders who could bid for all ot the projects or a tew. It was very likely there would be a contractor rehabbing more than one home. It the jobs were big jobs, staff could limit the contractors to a tew jobs contingent on how many bids they were awarded. This item was a streamlined way to use contractors the City was familiar with, and who specialized in these types ot projects. It was noted Delray Beach had the same list. Additionally, some of the City staff were permit officers who were able to permit onsite, thereby expediting these types ot projects. The pricing would be attractive to the City and residents. It was noted Hedrick Brothers and Kauffman Lynn were not on the list, but were on the list tor continuing contract. Ms. Bright would check with Ms. Sherrod, Community Development Manager, to ascertain 14 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 when the list was last updated. The concept was when she updated her list, it would roll over to the CRA. Attorney Cherof explained the liability was between the contractor and the property owner, not the CRA. If the board had a different concept of what the exposure of the CRA should be by facilitating the program, direction should be given. The concept staff followed in drafting the documents was the contractor bore the liability for their work and the agency would not be in a position to guarantee the work or be responsible for the shortcomings in the work. This was pointed out because in the past, residents had looked to the City as guarantor for work done by the contractors and the City had never undertaken that position. There was agreement that aspect should be included in the contract. Motion Vice Chair Rodriguez moved to approve the recommendation of the new list and process by which they used the list. Mr. Hay seconded the motion that unanimously passed. Vice Chair Rodriguez left the dais at 8:40 p.m. x. New Business: A. Consideration ot Auditor Selection Ms. Harris explained the current auditor's contract was ending. It was a five year contract that consisted of three years tirm and one option tor a two-year renewal. A few years back, Florida law changed and mandated municipalities use the RFP process when the auditors contract was completed. An RFP was issued in early May that included items specific to CRAs and all the specitications trom the Auditor General and the Government Finance Officers Association. Six responses were received, ranked and the top ranked tirm was Sanson Klein. They had the necessary CRA experience, and were the auditors tor Miami's and North Miami's CRAs. They had a detined methodology. They would start their work in August, which was necessary due to the new tinancial accounting standards implemented, and they would have a partner on site two days a week. Vice Chair Rodriguez returned to the dais at 8:42 p.m. Ms. Harris reported their tees were good, and a blended rate would be used it additional hours were needed. She requested the board approve staff's recommendation to retain the tirm. Motion 15 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Mr. Weiland moved to approve the authorization tor staff to negotiate with Sanson Klein Jacomino and Company, LLP. Ms. Ross seconded the motion. Ms. Ross thanked Ms. Harris for the information pertaining to the tirm. Vote A vote was taken and the motion unanimously passed. B. Consideration ot CRA Boundary Amendment Ms. Brooks explained the City and CRA adopted the Federal Highway Corridor Community Redevelopment plan in 2001 and updated it in 2006. The plan was divided into five planning areas. The subject properties were in planning area five, on the southern end ot the City. There were properties in the City that were not annexed into the CRA area and others were annexed into the City that were zoned Reserved to accommodate the corridor plan. It was noted there was no formal action to incorporate those parcels into the CRA; only the City Commission had the authority to change the CRA boundaries. The effected properties were: ./ Waterside, annexed in 2004 -115 units. ./ Tuscan, annexed in 2006 - 25 units ./ Gultstream Gardens, annexed in 2004 - 308 units planned ./ Palm Cove, annexed in 2006 - 121 units proposed ./ Bayfront, annexed in 2004, - 76 units. There was an expectation on staff's part, because the projects came before the CRA board tor quasi-judicial hearing, they would be added to the CRA. Due to the parcels being developed, there would be a TIF offset of approximately $500K, which was part ot the reason tor the struggling budget tor next year. There were three options tor the board to consider as follows: 1) Leave the above referenced projects out of the CRA boundary and amend the Federal Highway Corridor Plan to exclude those projects already constructed as well as future projects to be constructed in the unincorporated areas ot planning area tive (excluding Gultstream Gardens.) The legal description would have to be corrected 2) Make a policy determination that the intent ot the Federal Highway Corridor Community Redevelopment Plan (2001 and 2006) was to include these projects in the CRA in order to pay for tuture redevelopment efforts Le.; MLK; request the CRA attorney work with the City Attorney and taxing authorities to draft the CRA 16 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 boundary amendment resolution along with legal descriptions for the above- referenced projects ot which revenue is currently going to the City as well as tuture projects to have the boundaries amended to be included within the CRA by December 31,2008 3) It the board determines that the policy intent ot the Federal Highway Corridor Community Redevelopment Plan was the inclusion ot the above-reterenced projects into the CRA, the board could request reimbursement trom the City tor the amount equal to the TIF that would have been received by the agency since the time ot annexation ot the projects. There was discussion about the different properties that should be annexed into the CRA and not the City, and annexing enclaves from the County. There were areas, such as Wall Street, or areas that were undesirable, that should be annexed into the CRA as well and the CRA would be responsible tor them. It was noted in December 2007, the City Commission directed Staff to annex Gulfstream Gardens II, which still wasn't done. At the last meeting, staff was to address the CRA boundaries which included NE 4th Street, and only one side ot the street was annexed. Ms. Brooks explained the unincorporated areas cannot be in the CRA unless they were part ot the City. She explained it made sense to let developers come in and request annexation in a CRA specific land use, and it the board made that policy determination, they would be annexed and receive incentives, it needed to do the intrastructure. Regarding Gultstream Gardens II, the Ordinance was passed in February ot 2008, but there was an error in the legal description and one parcel was omitted and the Property Appraiser could not map it. Attorney Cherot explained the legal description contained in the Ordinance was provided by the property owner, not City staff. The corrective action was to obtain the property description and a meeting was scheduled with the Property Appraiser's office with the hope the error could be treated as a scrivener's error. The intent was to incorporate the entire parcel into the CRA area. Otherwise, there would be an ordinance amendment requiring two readings. The Fourth Street amendment would be heard in August and a lot ot analysis was associated with it. Staff was also reviewing all the streets that were split. Attorney Cherot explained the CRA would re-express their intent and an ordinance would be prepared for the City Commission that tormally adopted the boundary amendments necessary to effectuate the issue. The matter would return to the CRA between the City Commission's tirst and second ordinance readings tor a resolution in support ot the annexation. It was noted the City would lose revenues; however, those amounts were not calculated. It the Property Appraiser did not approve the year when the annexations should have been effectuated, the base year would be 2009 and the calculations on the completed projects have been based on the present day value ot the properties. 17 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 Kurt Bressner, City Manager, explained the CRA combined tax rate was 10.23% and he would multiply the taxable value tor 2008 and apply it to the City's millage rate at 6.553. There were two developments that were completed and it was unknown when the other parcels would be completed. If action was taken now, those other parcels would be brought in this year and put on the tax rolls by 2009. He agreed with the Federal Highway Corridor designating the area as a planning area, but it did not designate the area as being within the CRA boundary. The annexations were a policy decision for the CRA to make regarding each project. They would then torward their request to the City Commission to determine whether to modify the boundary and include the lands within the CRA. Ms. Bright explained that process did not occur in years 2005, 2006 and 2007. The agenda request would correct the boundary and start the process ot including taxable value ot projects that were not developed into the CRA. Motion Mr. Weiland moved to approve recommendation two. Mr. Hay seconded the motion that unanimously passed. There was discussion when the ordinance would come back, and it was agreed the City would expedite the ordinance hearing, including them on both August agendas and annexation ot the affected properties would be brought forward as one recommendation. Additionally when enclaves were annexed into the City, it they were not already within the CRA, the intent would be they would contemporaneously annexed into the CRA. There was concensus to include that language. As to whether the CRA would retrofit the TIF tor properties in the CRA boundaries, Mr. Bressner advised that amount would be $386K. Motion Mr. Weiland moved not to retro the TIF tunds to the City. Mr. Hay seconded the motion. Mr. Bressner explained the methodology used for the calculations. Vote The motion unanimously passed. XIII. Future Agenda Items None. XIV. Comments by Staff None. 18 Meeting Minutes Community Redevelopment Agency Boynton Beach, Florida July 8, 2008 a. Comments by Executive Director Ms. Bright announced Ashley Buckley, Administrative Services Manager, was leaving for maternity leave in a week and she introduced Theresa Utterbach, who would fill in for her. Ms. Utterbach was a paralegal and had a real estate background. Ghishlane Villanueva, known as "Ghish", was also introduced and she assumed the position ot Assistant Director of Finance. She had a Bachelors degree in Accounting and was in the process ot studying to become a CPA. Ms. Bright explained the Fourth ot July event went well. She commended Ms. Biscuiti and Ms. Wiser for they way they handled the event. There was a snatu regarding the fireworks and the CRA would be pursuing a credit with Grucci Fireworks. b. Comments by CRA Board Attorney None. c. Comments by CRA Board Vice Mayor Rodriguez requested when there were issues with taxation or boundary changes, that staff provide not only the impact to the CRA, but also the impact to the City. Attorney Cherof clarified there was a level ot communication needed between the City and CRA staff on these types ot issues. They were striving for this goal. Chair Taylor attended the Fourth ot July event, and halfway through the event, one rocket fell over and launched horizontally, knocking over racks ot others, set to go off. There was a man on the raft who was able to unplug the equipment before anyone was hurt. He was aware Grucci worked very hard to reassemble the pyrotechnics, but there was a delay and they did not receive the Grand Finale. He recommended approaching them tor a retund or issuing a credit tor next year. Chair Taylor also announced a great deal ot important intormation had been addressed. He advised it was a good meeting and he thanked the staff. d. Adjournment There being no turther business betore the board, the meeting adjourned at 9:18 p.m. Catherine Cherry Recording Secretary 071508 19